October 2013
Hardware & Homestyle
News
Contents 4
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Whilst every effort has been made to ensure that the information is correct The publisher cannot accept responsibility for errors, omissions or discrepancies. The views expressed are not necessarily those of the publisher
Letter from the editor
Welcome to the third issue of our publication. They say time goes by quickly when you are enjoying yourself. So, clearly, we are having a ball here at Hardware & Homestyle News! It only seems like yesterday that we asked for the support of retailers and businesses throughout the country promising a new, exciting publication for the entire trade – one which would reflect the changing nature of this exciting, inspiring business. The extent to which you responded has been humbling. Feedback has been overwhelmingly positive – both from readers and advertisers. As the longest-working team in this area of publishing, we know, more than most, that magazines and indeed editors, can come and go. That is our strength. And that is why we will never take your support for granted. Instead we will constantly strive to improve our publication, to build on the long-standing relationships we have developed over the years, to forge yet more new friendships, to promote more new products, to report on more new developments in retailing and to bring you the very latest in commentary, information and advice. In short – to serve the trade that has supported us. Just as we’ve always done. Simple really. On that note, we hope you enjoy this issue which includes a special profile on the inspirational Flynns of Lackagh in County Galway – most welcoming hosts for our team! Talk to you soon, Martin Foran, Editor
News Retail Ireland News On The Record
4 14 16
Luke Dolan
The Home Front Profile
20 23
Flynns of Lackagh
McKeown’s World Irish Cement: 75th Anniversary Books / Me and My Job Guest Columnist
30 32 35 37
David Clail
Tech Talk Counter Intelligence Insulation Update Product News The Room Outside HR Guidebook The Final Say
38 39 41 44 46 49 50
Hardware & Homestyle News is Published by Ocean Publishing 14, Upper Fitzwilliam Street Dublin 2 Tel: 01 678 5165 Fax: 01 678 5191
Publisher: Patrick Aylward Editor: Martin Foran Editorial Email: martin@hardwareandhomestylenews.ie National Sales Manager: Dermot Casey Email: dermot@hardwareandhomestylenews.ie Design/Layout: Jim Heron Email: jim@hardwareandhomestylenews.ie Printed by: W&G Baird Ltd, Antrim
News
Hardware & Homestyle News
Showtime! Confidence prevails spoga+gafa 2013 – a lesson in trend spotting!
This year’s spoga+gafa presented ‘everything that makes outdoor living prettier, better and more comfortable’, was the message. Selection The Garden Furniture sector, comprising approximately 700 exhibitors, offered the largest selection of exhibits. In terms of material, there were some interesting offerings and the spectrum ranged from bamboo to concrete, right through to outdoor-compatible leather. Teak also made a comeback as a result of the sustainable and vintage trends. The optical improvements and the development in the haptics of the fabrics in the garden furniture area were also impressive. Retailers should be on the lookout for offerings in this area when planning ahead for future seasons. Organisers say that the theme ‘Colour Clash’ will be visible on the terrace, bal-
Glee 2013 ends on a high
As the clocks chimed 4:00pm on 17 September 2013 something unusual was happening at i2i Events annual garden trade exhibition, Glee. Hotbed Instead of the sounds of stands being broken down, Glee was a hotbed of activity right up until the last minute. In fact, many exhibitors were still taking orders and talking to customers as the show closed its doors for another year! i2i’s Matthew Mein, Glee, who is the event manager, told Hardware & Homestyle News: ‘In order to truly maximise your time at an exhibition such as Glee it is vital that every moment is taken full advantage of – whether by placing orders, networking with the industry, locating new products or sourcing inspiration. ‘It was clear as the doors closed on the 2013 event that many people were following this philosophy; feedback postshow has also highlighted the benefits of this approach. ‘We have heard from a wealth of exhibitors who have reported phenomenal success at this year’s Glee, from big orders taken to national retail accounts opened. Success ‘I hope that this level of success is representative of the mood as we head into the 2014 season. I personally look forward to seeing how this year’s “Glee stories” develop in the year ahead.’
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cony and in the garden in the coming season. Brightly Also en vogue are brightly patterned cushions, vases, crockery and textiles, because hitherto classic indoor accessories are being increasingly used outdoors, bringing elegance and modernity out into the green. Regarding the theme of light, for example, solar lamps, which offer a high-quality, design-oriented look, will be all the rage in 2014, we are promised! Garden tools will be offering more comfort in the coming season too. Hedge trimmers and hoes for instance feature individually adjustable gripping heights and ergonomic handle constructions. In the garden care area the focus lay on novelties to take care of the home garden. Among other things, different soils, machines and accessories were on display.
Hardware & Homestyle News
s at trade events
News Yes, it’s Irish at the Autumn Gift & Home Fair 2013
Over 2,500 leading buyers attended the Autumn Gift & Home Fair 2013. They represented all industry sectors and every type of outlet, from the single individual small/medium store through to the large superstores, independent multiples, and major group outlets.
Ratheniska- Trade flocks to follow the plough!
In a clear sign of recognition for a great 2013 show, Hardware & Homestyle News understands that Ratheniska is set to host the National Ploughing Championships once again in 2014 as the event returns to County Laois for a second year. Record The event is considered a ‘must’ for many operators in the Hardware, Garden and Homestyle areas and once again the trade was well represented. And in fact, there were record attendance figures at the event this year in general. Organisers made the announcement regarding next year’s show at the close of business. Managing director, Anna May McHugh, said: ‘We are delighted to be staging the event here again next year. ‘Feedback from landowners, the local community and the wider public has been very positive and all were enthusiastic to see a return. Exhibitors and visitors ‘Speaking also with many of the exhibitors and visitors, all were very vocal about their wishes to have it staged here again.’ As for representatives from our trade, it seems the event got a big thumbs up!
Opportunity The event was a major selling and promotional opportunity for products from all corners of the world. However, home-grown manufacturers also featured strongly. And so, to better identify them for visitors, they were grouped together under the ‘Yes, it’s Irish’ banner. Autumn Gift & Home Fair 2013 comprised a unique formula of stand presentations, seminars/tutorials and new product displays on the one hand, and break-out, relaxation and restaurant areas such as the new Café Italia, Autumn Fayre and the Bagel Bar on the other. There was even a continuous BBQ running on the terrace overlooking the golf course. Experience Consequently, while exhibiting at and visiting the show was a professional, business-like experience, there was also the opportunity to network, relax, socialise, renew old acquaintances and make new friends. Hardware & Homestyle News did all of the above we are pleased to say!
October 2013
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News
Hardware & Homestyle News
‘Excitement surrounding show bodes well for future of trade’ The staff at Business Exhibitions Ltd have been kept busy with enquiries since Hardware & Homestyle News exclusively reported on how preparations were underway for their 2015 event at Citywest.
Experience
The Hardware, Garden & Homestyle Trade show will leverage the vast range of experience that Maureen Ledwith and Edmund Hourican have built up over the past three decades running shows like this – and their particular experience of our trade where they have been organising events since 1996. ‘The phone has been ringing since we announced our plans,’ says Maureen. ‘We are thrilled with the reaction. It seems there is a huge level of interest out there in this event. ‘This bodes well for the future of the trade. It seems the much talked about green shoots may finally be there at last.’ As a close observer of the trade over
Glanbia New Store
Shop Front – Glanbia Agribusiness, Bunclody
many years and with an impressive list of contacts, Maureen’s insights and observations will be of interest to many. Business Exhibition’s track record is impressive too.
Successful
As we reported in our last issue, the last ‘Hardware/DIY Home Garden Show’ organised by the company in Citywest was the most successful for exhibitors and visitors since the Show started. Exhibitors from the Hardware, Garden and Home sectors will form the core of the 2015 Show but new sectors will be added to make it a much bigger, exciting all-industry event. The show takes place in Citywest Exhibition Centre on Sunday/Monday, February 22-23, 2015. For more information contact Maureen Ledwith, sales director, Business Exhibitions Ltd, 6 Sandyford Office Park, Dublin, 18. Telephone +353 1 2913700. There have been a couple of good news stories in County Wexford as far as store openings go.
Glanbia
Glanbia Agribusiness opened for business on Thursday September 5 in the former WFC premises in Bunclody. Glanbia Agribusiness Bunclody stocks an extensive range of Animal Feeds, Fertilisers, Farm Hardware, Veterinary and Farming Supplies. ‘We carry the entire range of bulk and bagged GAIN Feeds including Ruminant, Horse, Poultry and Pet Feeds,’ is the message to Hardware & Homestyle News. ‘Our branch and business management teams are available at all times to give the best technical advice and support in areas of animal nutrition, grassland and crop management and in other areas.’
Range
Tom Cowman, Bunclody and Sean Savage (Counter Sales)
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The branch not only caters to the needs of farmers. It also stocks a comprehensive range of products for its diverse customer base including: Solid Fuels, General Hardware, Outdoor Clothing, Household Supplies, Pet Care, Gardening Supplies and more. To celebrate its opening there was a fantastic range of special offers available in store, we hear.
Maureen Ledwith – thrilled with reaction to show: ‘The phone hasn’t stopped ringing.’
‘Jobs advertised for new Meadows & Byrne complex at Drinagh, Wexford’ Also in the Model County, The Wexford People reports: ‘Hotelier Bill Kelly is looking for experienced waiters, chefs, a cashier and cleaning staff for his Kelly’s Cafe, one of three businesses that will operate out of what is termed a lifestyle centre.’ In action Mr Kelly reportedly said he was hoping to be in action in time for the Wexford Opera Festival. ‘I’m not 100 per cent sure of the staffing levels, but I would imagine 12 to 15 people in the immediate future with the potential to grow depending on the level of business,’ he told the local newspaper. Meadows & Byrne is the anchor business at the new centre which will include Hennessy’s Garden Centre. Once up and running it’s hoped that around 60 jobs will be created by the three businesses, we hear. Up and running Businessman Barry Kehoe said it was anticipated that the centre, opposite the Rosslare Road traffic island, ‘will be up and running by the festival which opens on Wednesday, October 23’. Work was underway on the garden centre at time of writing.
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News
Hardware & Homestyle News
Six-year high for Consumer Sentiment in September The overall KBC Ireland/ESRI Consumer Sentiment Index increased to 73.1 in September, from 66.8 in August. The 3-month moving average increased from 68.5 to 69.4.
Improvements
Commenting on the results Kevin Timoney, ESRI, said: ‘September’s survey reveals growing confidence amongst consumers, with improvements compared to September last year and August this year. ‘Consumer Sentiment reached a six-year high of 73.1 this month. The 3-month moving average continued its increase to 69.4, the highest reading since November 2007.’ The largest increases were for the forward-looking categories, suggesting consumers anticipate some improvement in the domestic economy over the coming year.
The index of consumer expectations increased strongly from 55.7 in August to 64.4. The index of current economic conditions also improved to 86.0 in September, from 83.3 in August, the fifth consecutive month of increase.
Jump
In addition, Austin Hughes, KBC Bank Ireland, noted: ‘The size of the jump in consumer sentiment in September is surprising but it seems broadly consistent with a gradually improving trend in confidence of late. ‘The Irish consumer is still cautious and cash constrained but, importantly, also appears to sense that the economic news is getting a little better and hinting at a somewhat brighter future.
SFA Mid-Year Survey on Late Payments
‘Our best guess is that recent positive news on jobs and property prices have encouraged a view that Irish economic prospects are now beginning to improve.
Modest
‘September saw more positive than negative views on the economic outlook – the first time this has happened since February 2006 – although it should be emphasised that the balance is relatively modest. ‘So, there is no sense in these data that consumers are expecting a return to the boom. ‘Indeed, while these results suggest the Irish economy may now be improving, they also highlight how weak the economy has been and how gloomy consumers had become through the past five or six years.’
Appointment: Peter Morrissey, sales manager, Bostik Ireland
Average payment in Ireland remains at 62 days The Acting Director of the Small Firms Association (SFA), Avine McNally, has said that late payments in Ireland are compounding a difficult financial environment for many small firms. The average payment in Ireland is taking 62 days.
The SFA released the findings of its mid-year Late Payment Survey, which shows: 57% of small firms offer credit terms of 30 days or less 70% of companies experience late payments on their credit terms (an increase of 2% on January 2013) Payment Terms: 48% of companies have a written contract ‘Getting paid on time is a nevon payment terms with their er-ending problem for most customers. 43% carry out credit small businesses,’ said Mcchecks on new customers. Nally. ‘Late payment causes Payment History: 69% review serious cash flow problems, re- Avine McNally payment performance of cusquires firms to extend overdraft tomers and 58% give credit more selecfacilities and consumes a great deal of tively based on this. management time. ‘This in turn affects the ability of the Payment Processing: Just 11% use debt business to compete, be profitable and collection agents and 8% include late paygrow.’ ment charges to slow paying customers.
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Hardware & Homestyle News
Credit Coaching is the Right Call to Make!
Declan Flood
Credit control is often considered a dirty word in business and tends to be one of the roles most business owners prefer to stay away from. While every business recognises the importance of credit control, most will have debts lying around for far too long. At best these balances are costing the business money, at worst it can result in cash flow problems that can jeopardise the entire business. For many small businesses having a resource dedicated to the collection of outstanding accounts is simply too expensive and the problem with including credit control as part of one person’s job is that they simply don’t have the time to make the necessary calls to make the money flow. Offering solutions to these problems is the Credit Coach Declan Flood, who is of-
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October 2013
Maureen Ledwith
Sales Director, 2015 Hardware, Garden & HomeStyle Trade Show
97
%
WHAT A PERFORMANCE! 97% of Exhibitors at the February 2013 Hardware Show in Citywest Exhibition Centre rated their participation as worthwhile/very worthwhile! One of the many reasons to join Maureen Ledwith and Edmund Hourican, organisers of the Hardware, Garden & HomeStyle Trade Show, at Citywest Exhibition Centre on Sunday/Monday February 22/23 2015.
TALK TO MAUREEN NOW Maureen Ledwith Sales Director Hardware, Garden & HomeStyle Trade Show Business Exhibitions Limited 6 Sandyford Office Park Dublin 18 T: +353 (0)1 291 3700 E: maureen@bizex.ie W: irishhardwarefair.com
News
Hardware & Homestyle News
Best of the Web:
Is There Really Such a Thing as Loyalty? by: Will Roche, with thanks to loyalty.org
‘Loyalty? If you want loyalty, buy a dog!’
loyalty. Deborah’s comment was: ‘If only they would make the slightest attempt to know and cater to me!’ Everyone wants to feel special and get a deal. The concept of selling products in a speciality retail store where you put those products on a shelf and hope someone will buy them because of a discount offer you placed in Sunday’s paper are over. I am not even sure many people receive the Sunday paper these days. The internet is disintermediating your retail store now!
Internet
I remember speaking to a department store retailer many years ago about what exactly customer loyalty was, and he said to me: ‘Loyalty? If you want loyalty, buy a dog!’ I have never forgotten that phrase, and it still makes me laugh. What does having a loyal customer mean? In sports, it means that even if your team is losing this year, you’re still buying season tickets. Unfortunately, customers do not feel the same way about retailers as they do about their sports teams.
Discover
How many customers do you know who will continue to shop at a retailer that is neglecting them and not taking the time to discover and satisfy their needs? There may be some, but certainly not very many. The American Society for Quality states that ‘the number one reason for losing a customer is neglect’. 68% of the time, neglect is the reason given by customers for going elsewhere. Only 14% of customers cited dissatisfaction of a product or service as their reason for abandoning a retailer. Those figures speak volumes about the importance of paying attention to your customers! I, like most of you, have several email addresses. I have an email address that I use
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exclusively when signing up for loyalty and subscription-based services. You probably do that too and are well aware of why I do it.
Offers
Besides all of the spam I receive, which I believe comes from retailers who sold my information, I also receive daily email offers from those retailers. I have never received an email offer that I actually thought was targeted uniquely for me and provided me with the feeling that the retailer knew me and what I might be interested in buying. Mass offers do nothing to drive loyalty from me, especially when I know everyone in the universe is receiving the same thing. In fact, receiving this type of offer has an adverse effect on me, and I actually become irritated. So my question is: With all of the recent talk about omni-channel and customer-centric retailing, what are retailers actually doing to achieve loyalty from their customers?
Conversation
I remember another conversation I had with Deborah Weinswig, managing director at Citi Group Research. I was talking about the work I was doing then at Microsoft to really change the game regarding retailers’ results around customer
I do a lot of shopping on the internet, and if I have any loyalty these days it is to Amazon. I welcome the chance to get off my couch and go to a retail store where I feel special and get a good deal. Once I’m there, I will surely spend more money on other things to make up for any margins lost on ‘the deal’. This is not difficult to understand! It is about people and human behaviour. So in my opinion loyalty is truly measured by the actions taken by your customers. That means frequency of visitation and spend share are directly proportional to their degree of loyalty. You can argue that someone tweeting about your brand is loyalty. What if they tweet about you without ever buying anything? Are they still considered a loyal customer?
Twenty Percent
Statistically, 20% of customers drive 80% of a retailer’s profit. It would be wise not to neglect or take for granted that 20%. First, identify who they are. If you cannot do that today, that’s where you need to start. Next, discover as much as you can about those people. Just ask them! If they are hesitant about providing you with information, they are not loyal, and worse, do not trust you! Fix that before going further. Lastly, treat all of your customers great, but treat that 20% greater! I heard that recently at an event where Theo Christ, senior director from Sak’s Fifth Avenue, talked about being customer-centric. She gets it, and it’s time others started getting it too. Today, there are many solutions professing to have solved this ‘how to achieve customer loyalty’ endeavour by installing their new widget. The real answer is that it takes hard work, introspective observation, help from those who know, technology and, most importantly, commitment and organization. You cannot reinvent yourself without doing the work and making the investments. If someone tells you differently, they are wrong! See more at: loyalty360.org
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Company News Storefit Shopfitters has been established for over 30 years. From design through to manufacturing, project management and installation, the firm’s highly skilled workforce produces quality shop and interior systems.
Storefit Shopfitters Ltd Storefit was founded in 1978 and originally started out supplying metal shelving to supermarket and hardware retail outlets.
Investment
A strategic investment in its own timber manufacturing plant in the early 90s allowed the business to expand into more specialist and bespoke work. Storefit has continued to expand its business internationally with contracts carried out in Russia, the UK and recently completed projects in Algeria, North Africa. So what drives the Storefit success story? ‘We’ve been in business for a long time now, and this longevity has afforded us time to understand and service the needs of a wide range of clients,’ says Eamonn Brien, CEO of Storefit.
Experienced
‘Whereas most of our competitors focus on one or two retail sectors, we are experienced in all sectors, and this gives us a much larger client base. ‘Factor in our leading-edge design skills and the use of our own manufacturing facilities and you have a business that has the ability to move with the times and grow in exciting new directions quickly.’ Delivering a superb finish is key to the Storefit service. It selects the finest materials, employs first-rate tradespeople and uses state-of-the-art tools and techniques. Operating to World Class Manufacturing (WCM) principles, Storefit meets the highest standards of manufacturing and service, while its quality checks ensure every project runs smoothly. At its 50,000 sq ft production, warehousing and showroom facility, even the most complex design finishes can be achieved.
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Hardware & Homestyle News
Retail ireland News Retail ireland News With every cloud comes a silver lining, and after a cold and prolonged winter, the summer arrived and sales went up.
Costs – a key concern Stephen Lynam, director, Retail Ireland
Here, both bespoke, and standard precision-made display equipment is created to your specific requirements.
Too high
Mission statement
Storefit’s mission statement is: ‘To be the very best at what we do, in everything we do.’ A challenging statement, but one which their satisfied clients are happy to endorse, we understand. This was clearly illustrated by recent projects completed in Algeria. ‘We were working to the client’s very specific design, sourcing materials and manufacturing the products to achieve the required concepts,’ says Eamonn. ‘This involved sourcing products from a wide range of countries throughout Europe, and manufacturing bespoke items. ‘We then co-ordinated the shipping of materials and products to Algeria and sent a team of fitters to install and complete the project. ‘The client was very impressed by the quality of the products and with the speed of installation which was delivered ahead of schedule, under budget.’
Success
Following the success of that project, Storefit anticipates further contracts coming from Algeria and other foreign sources. ‘We definitely see potential markets in North Africa and other emerging markets,’ says Eamonn. ‘Over the next few years however, we are hopeful that the economic situation in Ireland will have improved. In the meantime we aim to exploit the international market. ‘The management of the supply chain in these difficult times should bear fruit when there’s an upturn in the economy,’ he concludes. w: www. storefit.com
ware sales halved, and 10s of thousands of jobs have been lost as a result.
Figures for July from the Central Statistics Office showed the value of sales across the board up by 4.4% and, in the hardware sector, by 12%. Volumes were up even more – by 14%. But as the cold weather returns, so too will sales come back down to earth and retailers await the sustained and long-term return to growth that is so badly needed to protect jobs and prevent store closures. A key issue for retailers is, of course, costs. Labour, energy bills and taxes are crucial but a major area of concern is the high level of commercial rates that is causing so much heartache for retailers, including those in the hardware sector.
Retailers have had to keep prices low to attract price-sensitive customers, despite the fact that rents remain too high and the cost of doing business has increased. Such increases are not sustainable, given the state of the retail market, and will cost jobs. This money should be invested in store upgrades and staff numbers, not in higher local authority charges. If Dublin and other city centres are to have a thriving retail sector, we must be conscious of the need to keep costs down.
‘A key issue for retailers is costs.’
Increase
Impress
Retail Ireland contacted the Dublin City Manager and met with the Lord Mayor, Oisin Quinn, to impress upon him the vital need to keep rates bills in check. We also met with the Minister for Finance Michael Noonan to give the message of retailers to him in advance of his Budget. The key request was to freeze taxes and impose no new charges on retailers. With action on rates, taxes and other costs, 2014 just might be a brighter year for our sector.
As we go to press in advance of Budget 2014, we will have reaction in our next issue.
In late August, Retail Ireland commissioned a survey of key Dublin retailers which found that many retailers are facing an increase in their annual rates bill next year of between 30 and 80%. The increases are on foot of the rates revaluation process. The news that the cost of commercial rates for many retailers in the city is set to soar is unacceptable. Retail sales have fallen by 25% in recent years, with hard- Email: retail@ibec.ie Tel: 01-6051558
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On the record
Hardware & Homestyle News
Since leaving one of the biggest players in the industry, Luke Dolan has spent his time working with an eclectic mix of retailers including some of the smaller independent outlets around. Not surprisingly he has a rather unique perspective on our industry. Now, as he prepares to exit the business to take up a position with Tesco Ireland, the straight-talking Dolan shares his thoughts on our trade. As one might expect, he has some interesting observations...and some valuable advice...
Both sides now I’ve looked at life from both sides now... These famous song lyrics might well sum up the career of Luke Dolan in the Homewares industry in Ireland.
Range
Best known in Ireland for his work in our sector – he knows the FMCG sector well too, by the way – the former Ireland Support Office Manager of B&Q could of late be found working with a range of retailers from the smallest local independents to larger groups. He even found himself helping suppliers with regard to their communications with retail buyers and managers – ensuring their approach is ‘retailer friendly’. And he has been working with entrepreneurs to help them get into the retail market. So, a real cross-section then. And it’s clearly been an exciting time for Dolan. His friendly, approachable style has clearly worked to his advantage in attracting such an eclectic mix of clients.
Message
Yet, at the heart of it all, Dolan’s message is a simple one: Everyone should be looking at everyone else, he says, constantly learning from others. And there is always something to learn
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Hardware & Homestyle News
On the record
– from both big and small operators. As it happens his work in Ireland has been predominantly with the former group. His personal USP as we might refer to it, in his role as a consultant, lay in applying the learning and expertise he acquired in a multi-branch shed-type outfit to other operators in the market. Such work was not about transferring ideas and process wholesale of course. It was about taking the ideas, the processes, the strong points if you will, and tailoring these to others’ – often much smaller operators’ – needs. Interesting. We are all in the same game no matter what our size. ‘Yes,’ says Dolan. ‘Retail is retail. It’s about sales and margin and looking after the customer. ‘Scale is different, yes. Some numbers have extra digits on the end but predominantly the key focus has to be the same, whether you are in a relatively large or small turnover business.’ So, what is it that the average independent store in our sector can learn from someone like a big shed operator? ‘I think that there are some things that sheds and larger multiples do exceptionally well,’ says Dolan, cutting to the point. ‘For example, they have a lot of processes nailed down and this helps galvanise things and give focus to what they are doing. ‘So there is definitely an opportunity for independent smaller businesses to learn about how processes are ingrained in a company and how people follow process in order to drive the end result which is ultimately about sales and profitability. ‘That is probably the key thing – the area of processes, whether this is to do with merchandising, customer service, category management, margin management, development of themes, etc. ‘Obviously the larger players have resources to do all of this. However, it’s about taking the principles, tailoring them and making them more relevant to the smaller independent businesses so that they can benefit without necessarily having to invest in the infrastructure. What about customer service? Isn’t that the big selling point of the smaller store/ independent? Don’t they have it nailed now? ‘The whole premise of smaller businesses has been built on customer service and engagement. It’s something that the sheds may not have been traditionally as strong at,’ says Dolan. At this point however he sends out a stark warning: ‘The sheds in this trade are very quickly catching up and investing a lot in customer service. ‘Generally stock, prices, ranges, let’s say, these are pretty much the same or quite similar in the market,’ he continues. ‘What will set you apart is customer service and how you engage with the
customers and the experience you give them and I think the sheds are now very switched on to this. They are really making some great strides here. ‘Whatever that difference was between the independent/smaller market and shed market it is getting narrower in the trade. ‘If independents rest on their laurels and think that they have this nailed and don’t have to invest in people and development then the sheds will quickly take over. ‘That point of differentiation between them will be eroded. That poses a real risk for independents.’ Already the customer service in sheds ,is vastly different to a couple of years ago, says Dolan. ‘You can see the investment coming through on to the shop floor. People on the floor are really engaging with customers now.’ It could be argued that this is something the sheds have learned from the independents. The corollary of this of course is that independents need to learn from the sheds where appropriate. Dolan sums it up succinctly: ‘I think everyone should be looking at everyone and taking the best from the Market. ‘From the likes of Home Depot in the US to a small independent there is always something to learn.’ This is particularly true in these days of diversification and changing focus. ‘Sometimes the only way retailers can make up the difference after the fall off in the heavy area is through diversification,’ says Dolan. However, here he sounds a note of caution:
‘The key,’ he stresses, ‘lies in being very clear on what you want to do. ‘I think the mistake a lot of people make is that they know they need to diversify but they don’t execute or plan this properly. ‘What happens is that you run the risk of losing your identity. Sometimes you see things shoe-horned into areas without an eye to what the macro level needs to look like – the flow, the adjacencies etc. ‘Are you are an “everything under one roof” store, or are you going to be a “heavy-end retailer with a decorative edge”?’ ‘You have to be very clear, talk to customers, understand your area and market and see what opportunities exist. And when you have made the decision on what your store format needs to look like then it’s about execution. ‘If this is not done right it might not make any sense to the customer. ‘I am a massive advocate of diversification here but it has to be measured and it’s not at any cost. ‘Be very clear on what you want to look like and what it looks like to the customer. ‘If you don’t execute it properly you don’t achieve what you set out to achieve. ‘Customers are generally accepting of change if it is the right type of change but it has to be done and carried out properly. ‘People have sometimes tried too much too soon perhaps and lost identity in the process. ‘Some retailers introduce some lines that sit outside the circle of core products. ‘They bring in cash drivers. And I totally understand why. But from a customer perception point of view you lose your identity sometimes.’ Also bear in mind that people are not just looking for lowest price. ‘It is about value for money,’ Dolan re October 2013
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On the record that you can’t replicate on line.’ It’s about ‘theatre’ yes, but without the overkill. ‘Some spend huge amounts of money and go over the top,’ says Dolan. ‘It’s not about that. It’s about giving inspiration and visualisation. ‘This means that when the customer is looking at something in a store they can visualise it in their homes. ‘Bring it to life. That’s what it’s about! ‘It’s about taking the key products and doing something with them to give people confidence and inspiration to replicate ideas at home. ‘Sometimes people just need that bit of help. ‘It’s easy for us to forget that while we have the intrinsic knowledge of what works with what, sometimes other people don’t. ‘They want to make a change but are not sure how. ‘Trends are still important and people are still fashion led.’
minds us. ‘It is not just about “this thing only cost two quid”. It’s about the experience in store. Is there somewhere to park? Are the products good quality? Is there someone to advise me? It’s the whole experience. ‘When the market turned and people started looking for value it was sometimes interpreted that that was about the cheapest. ’But it’s not about cheapest at all costs. You have to get the balance right. That is the key.’ Staff can help explain the value of course but there are less people on shop floors due to cutbacks. ‘In the trade, the opportunities to engage are less now sometimes due to the cutbacks, so there are things you can do in terms of point of sale material – like listing features and benefits instead of just listing the price for example. ‘A lot of suppliers are looking at supplementary advertising. Shelf-edge types and infomercials for example – things that give people an extra idea about products and how to use them and what they do. ‘From a staffing point of view you also have to look at your
‘Deploy people at the right times. That is probably a bit of a mindset change sometimes but it needs to happen.
‘More design-led stuff is coming in alongside the traditional now.’ busiest times in terms of deployment,’ adds Dolan. ‘The days of nine to five Monday to Friday are gone. You have to look at peaks and troughs through the week – when the customers are in.
People need to be more flexible? ‘Absolutely. The market has changed and you have to be there to respond to customers’ needs. ‘If you are very busy on a Wednesday afternoon then you have to look at having people in to deal with that. As well as flexibility there has also been a change in expectations in recent years. ‘For starters, customers are coming looking for inspiration and have to be given that,’ says Dolan. ‘We talk about creating “theatre” in stores. Displays, demonstrations, touch and feel – that sort of thing needs to be done. ‘I don’t think the market is so much about the “functional” as it used to be – it is definitely migrating towards the “aspirational” side of things. ‘One of the key things is that, as multi-channel is expanding and on-line is expanding there is an onus on brick and mortar stores to create the experience
The advent of IKEA coming into the market has helped that space . ‘It helped make trends fashionable and affordable,’ says Dolan. ‘I think retailers have had to raise the game with IKEA coming in. ‘For retailers there is definitely a bigger focus on range and a slight movement to more cutting–edge design. ‘More design-led stuff is coming in alongside the traditional now. ‘I think IKEA are exceptional at bringing products to life. That’s the “theatre”. ‘A lot of retailers have had to look at that. ‘The thing about real blue– chip companies like this coming in is that, generally, it should expand the market. ‘If you think about it, people go to IKEA and buy a new kitchen or new furniture and generally this is in the context of their wanting to redo an entire room. ‘There are certain things IKEA don’t do. For instance, invariably people will want to paint as well, and do things like add new flooring. ‘So there’s the opportunity for this market to piggyback on the success and desire they have created.’ Inspirational words. We wish Luke Dolan well in the future. October 2013
19
The Home Front
Hardware & Homestyle News
Practicality Durability
& 20
October 2013
Pictures from the Harvey Norman Winter Home Collection.
Hardware & Homestyle News
Styles That Appeal This month The Home Front caught up with Rachel McCann who is Homewares and Accessories Buyer (Co-ordinator) for Harvey Norman Ireland. As you might expect, Rachel has her finger on the pulse of this market and tells us that the Irish consumer has a very distinctive style... Hardware & Homestyle News (H&H): How style conscious/interiors conscious is the average Irish consumer that you cater for? Rachel McCann (RmC): We just love our homes; we all want the coolest, trendiest houses in town. We are practical shoppers though, especially for the big ticket items so we tend to play safe when choosing a sofa or a dining set. Neutral is really the most clever option as you can add a splash of colour with cushions, wallpaper or lamps any time and you have a new room. H&H: Do you find that there are particular styles that appeal to Irish homeowners more than others? RmC: Definitely. The Irish consumer has a very distinctive style. We definitely love ‘cosy’, we love lots of softness in our homes. We just adore candles, and lanterns or anything else that sets a mood. Cushions are another big Irish favourite and big comfy throws on a very deep soft sofa. H&H: What do you think the Irish Homeowner is looking for in terms of quality and functionality when it comes to shopping for interiors?
RmC: Practicality and durability are two of the most important factors for larger, more expensive items. H&H: Have we got more practical after the demise of the Celtic Tiger? Is there a difference in what we are buying? RmC: Yes definitely, but we still are very house proud and we all still want that dream home. The Irish are great shoppers and we know how to spot a bargain a mile away! I think that if we find a small bargain on our furniture then we can splash out and treat ourselves to those few extra accessories that make our home complete. H&H: Have you noticed an upturn in the market/rise in interest in big ticket items as things gradually seem to get better on the economic front? RmC: Yes actually, that’s exactly what is happening; we are constantly growing the business at the top end. I think it’s because we are offering a lot more top end product but we’re conscious of keeping the price tag as practical and affordable as possible. H&H: How important is it to offer new items regularly and refresh ranges? RmC: Oh it’s so important. I couldn’t
The Home Front do my job if we didn’t change our looks all the time. I want our customers to walk around our stores with a smile on their faces! The market is changing and is the most exciting that I have seen in a long time. There are great designs available out there and my job is to bring those designs to the Harvey Norman customer. H&H: Can you name some of the products you’ll be offering this season? RmC: I just love our new Catherine Lansfield bed linen. It’s unbelievable value at €25.00 for a double set (including two pillow cases). It can convert your bedroom to the most fun room in the house INSTANTLY! This look is all about over the top mismatched styles, mix and match with any of our gorgeous little hanging hearts and false flowers. You’ll pick these and so many more gorgeous little trinkets up in store starting from only €2.00. H&H: Have you any predictions for next year in terms of styles, etc. that might be in vogue? RmC: The biggest colour for 2014 is CORAL orange; it’s going to be huge! Mint green too, both together or alone, there will be no getting away from it, it’s fabulous and we’ll obviously have loads of it!
October 2013
21
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Profile
Hardware & Homestyle News
Julien Flynn represents the fifth generation of family members involved in running the Family businesses at Lackagh in County Galway. Together with his wife Emma he leads from the front and has his finger clearly on the pulse. A year on from their 170th anniversary we caught up with Julien to discuss the current market and the organisation itself, which underwent a major transformation of its hardware operation in 2011.
Moving with the times – rooted in the past
For Flynns of Lackagh, changing the focus of their hardware business in 2011 was very much the right move at the right time, according to owner Julien Flynn. ‘We totally revamped the store,’ recalls Julien. ‘The old outlet was in serious need of a facelift – both in terms of the exterior and the interior.’ While this may well have been the case, the main focus of the revamp, it seems, was on changing the product mix. As a result Flynns flipped the percentages from 80:20% ‘heavy’/‘agri’ to ‘light’ hardware, to a scenario that is the direct opposite of this.
Bright and welcoming
Now, the bright and welcoming store is perfectly positioned to attract the retail customers, many of whom already visit the site to shop at the Flynn’s Supervalu outlet as well as at the many other stores in their development where there truly is something for everyone. Flynn’s Supervalu is of immense importance to the entire development of course. It was originally set up under the VG brand and was the first self-service supermarket in the West of Ireland, having
been established by Julien’s father, Thomas. ‘The fact we have a Supervalu on site and other outlets too means footfall is increased,’ says Julien. ‘It would have been difficult to be a standalone hardware merchant or builders’ providers here over the past couple of years. As a result of this and of the revamp at the Topline store (and a more recent revamp at the Supervalu), Flynns are not only focused correctly to serve the current market but also wellplaced to take advantage of the tentatively talked about upturn that may be on the cards.
Hardware
‘The bright and welcoming store is perfectly positioned to attract the retail customers’
Julien is certainly one to be optimistic: ‘We certainly hope that things are about to stabilise and gradually improve,’ he says of the hardware market which we are mainly here to talk about of course.
On the hardware side, Julien is also keen to mention Topline as having been a huge help in the upgrade and revamp of their outlet. Topline, he says, was very helpful and aided considerably when it came to areas like planning, store development and internal reorganisation. ‘They have been a great assistance,’ says Julien. ‘Their professionalism and expertise were a great help to us.’
Local ments
develop-
This change was perhaps a long time coming but, like many other organisations, Flynns were busy keeping up with demand in the so called ‘boom’ years, which often seem a lifetime away now to many of us. October 2013
23
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Hardware & Homestyle News
At the time there were housing developments to be serviced in the area and a lot of development taking place. One housing development was built right next to Flynns’ premises, clearly this was good for the building materials side of the business. Naturally, these houses will need some maintenance from time to time so this is obviously an advantage for the hardware store as it currently stands, and it illustrates rather neatly how much of the focus of the market has changed from building materials to maintenance of property. ‘The market has turned very much towards DIY and maintenance,’ says Julien. The difference here is that customers are doing their own maintenance of course. It’s usually not professionals. And the current Flynn’s set up is positioned perfectly for this.
Happy
Not surprisingly, all at Flynns are very happy with the changes. ‘It has all had positive consequences,’ Julien says. ‘If we hadn’t done it we’d be in a worse position today.’ Here Julien also refers to the issues faced by some traders in relation to developments – such as creating out-oftown centres and moving to green field sites – that may have been carried out in the ‘boom’ years and which may have led to a lot of financial strain further
Profile
From small beginnings...
‘Originally there was a public house here,’ explains Julien Flynn taking us back to the early days of the Flynn’s site at Lackagh. ‘However, they also bartered a lot of agricultural goods. There was also some agricultural hardware sold from the premises.’ The hardware and building end of the business was really developed in the 1970s and in ‘82 a move was made to a purpose-built premises on the same eight-acre site – the site where Flynns still remains today. There was a hardware store and a small supermarket. ‘After ‘82 it all developed slowly as turnover grew and a series of developments took place,’ explains Julien.
Components
There are three components to the current set up. The biggest element is a Supervalu outlet. This accounts for almost 50% of turnover. Then there is Flynn’s Agri and Fuels department. Following that there is the Topline Hardware and DIY store. In the same location the Flynns have constructed and rented out a varied mix of outlets, which together draw a wide range of customers. There is a pharmacy, a café and restaurant, a hair salon, a beauty salon, An Post, a car wash and repairers and even an acupuncturist and yoga business as well as a medical centre.
October 2013
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Hardware & Homestyle News
down the line for merchants. ‘We are lucky in that we don’t have those pressures,’ he adds. ‘We are very fortunate.’ At the same time, Julien explains that, like many other outlets, they suffered in terms of a reduction of turnover and with bad debt following the demise of the economic boom and the fall off in construction – but they have been strong enough to deal with all of this. One gets the feeling that part of their strength lies in being very much at the centre of their community. There is certainly a great deal of loyalty among customers who have shopped with Flynns for generations. ‘The majority of our business comes from a few miles around us,’ says Julien. ‘However we do go beyond that too. ‘There is quite a lot of wholesale business into Connemara with the ‘agri’ business, so we might quote for building materials there for example.’ Closer to home competitors are plentiful in a 10 mile radius, despite the rural location here. Athenry, Headford, Galway City and Tuam, for example, are all within striking distance.
‘The types of customers at the hardware store now include more females and family groups’
‘No matter where you go there is competition,’ says Julien. ‘Someone pricing a roof for a house would go to all of the competition.’
New customers
Despite this the locals do show their loyalty by continuing to visit in huge numbers. The types of customers at the hardware store now include more females and family groups and cash sales have been growing hugely since the revamp. ‘We noticed all of this straight away,’ Julien says. ‘We would have been dealing hugely on a credit basis before.’ Clearly the new customers are finding it very pleasant to shop here. Not surprisingly then DIY is huge for Flynn’s. ‘There is definitely a lot of this work going on,’says Julien. ‘This could be people having a shot at putting up shelves or doing a bit of painting and redecorating.’ Paint is huge too, not surprisingly. Fleetwood and Dulux are among the main brands with a huge offering of other brands
October 2013
27
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Profile
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including many specialist ranges. Tools are important also, but not at the higher-priced end of the market as in the Celtic Tiger years. Again, the DIY market is where the action is now. GIY (grow your own) has been quite big over the past couple of years, adds Julien. Seeds, tools, etc. are all in demand here. Other areas that are important are Stoves. ‘Other types of energy-efficient systems have come and gone,’ says Julien. ‘This has been fairly constant.’ Lighting is important too. Also, Plumbing is a big department. On the subject of Plumbing: ‘there are a lot of people doing small jobs such as extensions and attic conversions and there will be plumbing in en suites and bathrooms involved here,’ Julien explains. Not surprisingly, quality customer service has been a large part of the journey in the move from an emphasis on ‘Heavy’ to ‘Light’ ends of the business. There is certainly a different type of approach in retail, it is agreed. ‘We have excellent staff,’ says Julien, on this note. ‘You need people who have knowledge and are great to deal with.’
Range of businesses
Julien observes that now, more than ever, it is very important to be involved in a range of pursuits. The mix here has therefore been hugely beneficial, he points out. However it is important to never lose sight of their traditional customers – including their agri customers. ‘Because of our rural location we have a lot of farm trade so there is a lot of “agri” hardware instore,’ Julien explains. ‘We are grain merchants as well which would be quite a rare thing in the West of Ireland. Predominantly spring barley is the crop that we purchase. We process it and bag it and either sell it wholesale or retail.’
Future
As to the future, with such a wide range of businesses on site, there is always something to do here. At the Supervalu for example, there has been a complete revamp this year. Development, meanwhile, continues steadily on the hardware side. There is always an eye to the future. ‘My dad used to talk about looking to the future and seeing what people want in 10 years’ time,’ says Julien, showing a little of the family spirit that doubtless led to Flynns’ success over such a long period. ’It’s about reinvesting,’ he adds. One gets the feeling that Flynns are eminently prepared for whatever the next few years may bring.
Emma & Julien Flynn
October 2013
29
McKeown’s World
Hardware & Homestyle News
Recent figures from Kantar World Panel show that the two major Discounters, Aldi and Lidl, are expected to have a combined share of 15% of the Irish grocery market by the end of 2013. This represents a massive change in the grocery landscape over recent years, with the traditional power-houses of food retailing losing share to the no-frills competition.
The continued rise of the discounter Aldi and Lidl are two unique German organisations, each with a fascinating history and culture.
Abbreviation
The name Aldi is an abbreviation of Albrecht Discounters, and the two Aldi brothers, Theo and Karl, ran the business which they split into two companies. One was controlled from northern Germany and the other from southern Germany. With classic German flair they called the two businesses Aldi North and Aldi South. The brothers disagreed over whether to stock cigarettes, so Aldi North does stock tobacco, whereas Aldi South, which includes Ireland, does not. The brothers’ frugal approach changed the face of German food retailing and can still be seen in-store today.
Surname
Lidl has its origins in the Schwarz Group in the 30s. The name Lidl was the surname of a family friend, as the company wanted to avoid the negative connotations of “Schwarz Markt” or black market. Initially the two chains appealed to low-income households in their native Germany, but now every respectable German Hausfrau shops there. This universal appeal is now evident in our market too, with each chain having around 7% of the grocery market here. But it’s not just the Germans who are growing in the discount sector – UK discounters are making significant inroads here too, most visibly with Dealz in the Republic and Poundland in the North. Dealz now have 26 stores in the Republic, with plans to open another 10. An interesting aspect of the Dealz range is the number of leading brands including Coca-Cola and Tayto which are on offer, alongside the more traditional range of discounter brands. The Dealz stores are bright and attractive, and the staff are lively and engaged, actively pushing the latest deal at the checkout.
About David
Established
Local Irish discounters are also very well established, with many of them leaving the heritage of the pound shop behind and actually offering the consumer what they want, combined with an acceptable shopping experience. The recession and the rise of the discounters have had an interesting effect on consumer behaviour. Across Europe and in the States, consumers often buy bulk, or secondary items from the mass market retailer, and products they care more about from specialist retailers. In Irish grocery this would equate to breakfast cereals at low prices from Tesco, but sausages from Superquinn, or even the local farmers’ market. Many consumers no longer do the ‘big shop’ at one retailer – they go to several outlets either looking for deals, or a certain level of quality. Every branded manufacturer in the food industry is wrestling with the question of how to deal with this growing channel, without compromising brand values and pricing with existing customers. Every local retailer is also wondering how to handle a competitor with massive European and worldwide buying power, with a very low margin expectation.
Challenge
The challenge for our sector is that the grocery retailers in general, including the discounters, will increasingly aim to take share from traditional DIY outlets. At the minute the DIY offering in the discounter channel is fairly limited, but I am sure we have all seen the discounter flyers in the papers with strong offers on defined ranges. There will, inevitably, be some loss of share to grocery and discounters, but the complexity and relatively low frequency of purchase in the DIY categories mean that a good DIY store will always have an advantage over a general retailer.
Good as the staff in Dealz are, I suspect they would struggle to explain the difference between a sealant and a filler. Consumers don’t buy these products every day, so there is still a role for advice, information and guidance in-store. So while the battle between traditional DIY outlets and discounters will become increasingly intense in certain categories, other categories should remain relatively immune.
Critical
Without being complacent, the advice and knowledge on offer up and down the country will prove critical if traditional hardware and home improvement outlets are to survive in a very competitive marketplace.
David McKeown is a sales and marketing professional with wide experience in the construction and DIY industries in Ireland, the UK and Germany. He runs his own sales agency, xSell Sales and Marketing, providing consultancy and agency services to a number of clients.
30
October 2013
irish Cement
Hardware & Homestyle News
There are few companies in Ireland that can match the longevity and sustained contribution to Ireland’s national growth and development of Irish Cement Ltd. We wish them a Happy Anniversary!
Irish Cement Seventy-Fifth Anniversary
Irish Cement has made a significant contribution to the growth and transformation of Ireland over the past 75 years, from what was then a rural agricultural country on the periphery of Europe into what is now a largely urban-based 21st century modern economy. Today, modern production plants at Platin and Limerick incorporate the most up-to-date and efficient production technologies and serve home and export markets with a portfolio of eco-efficient products which will make a lasting contribution to the built environment.
Historical Beginnings
Following the Cement Act of 1933 which provided the legal framework for the development of a cement industry in Ireland, ‘Cement Ltd’ was registered as a Limited Liability Company in May 1936. Séamus Lynch, managing director of Irish Cement Ltd, explains: ‘When the company was established in the mid-1930s, it was decided to build a new 150,000 tonne cement factory at Drogheda and a second 75,000 tonne facility at Castlemungret just outside Limerick. ‘The two plants both came into operation in the spring of 1938 and it was actually Seán Lemass, the then Minister for Industry and Commerce, who officially opened both plants simultaneously at 12.15pm on May 23rd 1938.’
The Early Years
Due to increasing demand, it was soon decided to double capacity at the Drogheda plant with a second produc-
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October 2013
1968 Cement Ltd decided to build a new factory at a green field site at Platin outside Drogheda to meet the demands of the expanding economy and Platin Kiln 1, the first dry process plant in Ireland, was commissioned in 1972.’ Platin Kiln 1 increased annual production capacity by over 400,000 tonnes and, soon after, a second kiln project followed which was at the time the largest single construction project ever undertaken by Cement Ltd. Commissioned in 1977, Kiln 2 added an impressive 1 million tonnes of extra capacity. By now Cement Ltd and Roadstone Ltd had merged to form Cement Roadstone Holdings Ltd, subsequently renamed CRH plc, which has grown to become one of the world’s largest building tion line which commenced operations material companies. in 1940. In addition, as Lynch explains, the Lynch points out that, despite the name of the company was changed to impact of the Second World War, many Irish Cement Ltd: ‘In December 1978 we large construction projects were going became IRISH CEMENT LTD to reflect ahead in Ireland during the the long history of inSéamus Lynch, managing director 1940s: digenous cement manuIrish Cement Limited ‘The new State was facture at Drogheda and starting to take shape Limerick and to more with big projects such as appropriately brand the Busáras in Dublin and Company and its prodthe Liffey Hydro-Electric ucts as being 100% Irish.’ Scheme coming through. Following the highly ‘The new aprons and successful introduction runway at Dublin Airport of the new dry process created significant dekilns at Platin during mand for large volumes of the 1970s the company concrete which led to the then turned its attention first deliveries of cement in to a major modernisabulk in 1946. tion project at Limerick ‘Readymixed concrete Works, which saw the was produced in Dublin for commissioning of a new the first time in 1949, and Kiln 6 dry process line in we saw steady growth in 1983. demand for bulk cement from then on.’ In late 1951 plans were developed to As a response to the 1980s’ recession, extend both Works. Irish Cement established Irish Cement In 1954 a third unit of 150,000 tonnes Consultancy Services to market interat Drogheda and a second unit of nationally the considerable engineering 100,000 tonnes at Limerick came into skills built up over many decades with production. a view to maintaining these skills within the company. Lynch says it was an innovative move: In the 1960s, production capacity was ‘It helped preserve corporate knowledge further increased to meet growing dewithin the company in a period of promand levels by commissioning three longed downturn. Throughout the 1980s new kilns at Limerick in 1961, 1964 and our engineers managed many signifi1965 which brought total production levcant projects across five continents, parels to over 1 million tonnes. ticularly Africa. Meanwhile in Drogheda, Lynch says it ‘New export opportunities in the UK was the beginning of a new chapter: ‘In were also identified and new markets
Overseas Initiatives
Expansionary Years
irish Cement
Hardware & Homestyle News
Platin 3 PlatinKiln Works preheater tower Kiln 3.
Limerick works under construction in the 1930s.
were developed here promoting the use of concrete, particularly in agriculture.’
Recent Capacity Developments
The recession of the 1980s gave way to renewed growth during the 1990s and early 2000s. The Company responded to the increased demand by implementing a number of major projects to enhance capacity at Limerick and Platin. In late 2008 a new state-of-the-art energy efficient Kiln line (Kiln 3) with modern milling technology and a production capacity of 1.4 million tonnes was successfully completed at Platin, and is now one of the most energy-efficient facilities in Europe.
Eco Credentials & Sustainability
A major product development programme was launched in the early 2000s to establish the most sustainable eco-efficient low carbon product portfolio for the future. Lynch explains it was another industry first for Irish Cement and an important part of the company’s sustainability strategy. ‘We identified CEM II Portland – Limestone cement, which is produced by grinding unburnt naturally occurring limestone with clinker, as the sustainable flagship product for the future and we first introduced it to the market in 2007. It quickly became the main cement used throughout Ireland.’ In recent years, Irish Cement Ltd has
taken further strides in its commitment to sustainable cement production – the substitution of fossil fuels with alternative waste-derived fuels in Platin Works. Lynch explains: ‘As well as enhancing the company’s strategy of producing sustainable low carbon cements, it makes a significant contribution to national waste management by diverting waste from landfill.’ Throughout the history of Irish Cement Ltd., there have been periods of growth and recession. Lynch explains: ‘Throughout these periods, Irish Cement Ltd has made a notable contribution to the local communities in which it operates, giving much needed employment in the North-East and Mid-West. ‘Throughout Ireland, the sustainable development of the built environment – houses, schools, hospitals, farms, roads, commercial and industrial buildings and infrastructure of all kinds – has been made possible through concrete made with the company’s products over this period.’
The Future
Notwithstanding the current construction climate, Lynch is optimistic about the future. ‘Irish Cement Ltd, as the major producer of cement in Ireland, with mod-
ern energy-efficient plants, its new eco-efficient product portfolio and its renowned technical excellence both in cement plant process technology and cement and concrete technology in use, is extremely well positioned to continue making a major contribution to the sustainable development of Ireland well into the future.’ he decision to establish Cement Ltd in Drogheda and Limerick in 1938 was early recognition by the State of the strategic national importance of indigenous cement production using locally available and sustainable Irish raw materials. While perhaps taken for granted today, this remains as important a principle as 75 years ago. Today Irish Cement is an industry leader with one of the most modern efficient cement production facilities in Europe allowing it to compete interna- Jim Mintern – regional tionally and sustain director – Europe West, CRH jobs and investment here in Ireland. Technological investments such as Kiln 3, and innovations like low carbon CEM II cement and low carbon alternative fuels have significantly reduced emissions and are an important part of Irish Cement’s commitment to longterm sustainable operations. Jim Mintern – regional director – Europe West, CRH, says, ‘Irish Cement has also played an important role in the development of the CRH Group worldwide, and has proven to be a worldclass training ground for many of CRH’s global management team. ‘Many of CRH’s senior executives and engineers in Europe and Asia have come through Irish Cement. This expertise constantly flows back into Irish Cement, building on the reserves of operational excellence and helping immeasurably in planning for the company’s next 75 years in Ireland.’
T
October 2013
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Hardware & Homestyle News Buy The Book The Royal Horticultural Society
How to grow practically everything Gardening Projects Anyone Can Do by Zia Allaway & Lia Leendertz Published by Dorling Kindersley £14.99 Stg How to Grow Practically Everything is an inspiring and practical read. It gives complete beginners the confidence to grow almost anything from herbs on a windowsill to vegetables in a vegetable garden – to feed the whole family.
Clear instructions
Not bad so far. And each project is presented with clear instructions and photography, explaining when to plant and showing the equipment required and the time needed to do so. The book is packed with practical ideas for gardens large and small – from planting pots of vegetables on a patio to making a border for year-round colour. So, if your customers want to start gardening or simply improve their skills these sure-fire projects for beginners – and more experienced gardeners too – will give them green fingers in no time at all. And of course this is in all our interests. In fact our gardening correspondent Liam Kelly this month has a special focus on teaching and educating customers. Liam writes: ‘We are all aware of the knowledge we possess ourselves but we tend to make rash assumptions about the knowledge of others. More often than not we presume that people know what they want, which they often do of course – but the mistake we make is thinking that they know how to achieve the end result.
Inspire
Well, this book can certainly help for starters and can provide a welcome add-on sale. It could even help inspire staff members. Follow the step-by-step photographs and expert advice from the RHS and ‘tackle practical ideas for gardens large and small,’ readers are told. ‘You’ll find all the detailed guidance and quick tips you’ll need covering materials, plants, location and timing – and showing you how to get great results every time. ‘Covering all the basics and providing essential tips and techniques on aftercare, this is the practical, inspirational guide for every gardener.’
Delight
What more can we say other than this book is a true delight – as we have come to expect from Dorling Kindersley. Guaranteed to complement any gardening offering.
Me And My Job
Name: James Byrne Current position Retail marketing manager – Glanbia Agribusiness. Length of time in present role 1.5 Years. Professional background: Retail and digital marketing, business management, retail operations, loyalty marketing and brand management. Before joining Glanbia I worked for almost 10 years in the family business heading up the marketing function for a chain of 22 stores (bookshops, toyshops and newsagencies) as well as stints with Musgrave Group and World Book Day Ireland, a Unesco charity. What attracted you to your current position? The opportunity to work with a company like Glanbia which, though firmly rooted in Ireland, has an international focus and a progressive reputation. Agribusiness is an exciting industry to work in at the moment and my role is broad and varied covering retail, digital and loyalty marketing across almost 60 branches and websites. What do you see as your main goals and challenges in 2013? The weather was a big challenge in the early part of this year, affecting both our farming and gardening categories but the turnaround as the year progressed was phenomenal – it was like experiencing two completely different years in the one 12-month period. The first half of the year was particularly difficult for our farming customers who suffered throughout the fodder crisis and the gardening season didn’t really start until May. Once the summer started, we couldn’t have asked for better weather and we are able to regain a lot of lost ground. We have definitely seen a turnaround this year in a number of areas. Our agri hardware business also rebounded in the second part of the year as the fodder crisis ended. What makes you feel most fulfilled in your job? Working with people who are passionate about what they do. What do you see as the main challenges facing the industry? Sustainability and eCommerce – challenges and opportunities. October 2013
35
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Hardware & Homestyle News
Guest Columnist
Our sector has come a long way in what is, relatively speaking, a rather short space of time. Operators have moved to reflect consumer trends and expectations as well as shopping habits. Award-winning store manager David Clail considers the current retail landscape in our trade.
21st Century ‘Hardware’ Stores? Retail in general has transformed at a staggering rate since the late ‘80s and continues to do so. The effect this has had on our sector is no less staggering if you take a moment to consider how far we have come in such a relatively short space of time. Think back to the traditional, almost iconic image of a ‘Hardware Store’. Virtually every town and village up and down the country had one: a place where you could buy almost anything by the pound, from nails to flower bulbs.
Solving
This was a place for solving practical problems, a place you visited when you needed to, a place to pick up the solution, whether that be a product, some advice or even to get a minor repair done. Today, that image is very different both from the perspective of the consumer and the business operators. Whether it’s the evolved versions of these traditional stores, the generalists and specialists that followed or even the ‘big box’ retailers that make up so much of today’s retail landscape in this sector, the term ‘hardware’ no longer encapsulates with even a modicum of accuracy what this sector is all about. Through the 90s, the concept of ‘DIY’ ruled supreme. This was a male-focused, male-dominated environment that spawned countless ‘home improvement’ TV shows.
Evolved
The idea of ‘home improvement’ evolved rapidly over the years as consumers and in particular, female consumers, began to view their homes as an extension of their personal space and an expression of their own unique personalities.
This was something to be embraced and enhanced and so the demand for an environment that provided not only the means, but also the inspiration quickly followed. The majority of today’s stores are without doubt more accurately described as ‘home enhancement’ outlets. Stores in the sector still carry the traditional ‘hardware’ offering. This has been greatly enhanced in terms of presentation but has also had a sense of style added to its functional element.
Diversified
In addition and indeed, more importantly, stores have diversified to varying extents into homewares, home furnishings, kitchens, bathrooms and of course everything you need to enhance your lifestyle outside of your home your garden or ‘outdoor living’ space. In order to move with consumer trends, expectations and indeed shopping habits, retailers have had to vastly expand their appeal. Consumers want all the traditional ranges, albeit packaged and presented vastly differently, but they want so much more. Shopping is and will continAward-winning store ue to become more about the manager, David Clail emotional experience. ConHome Enhancement resumers don’t just shop to get tailing is about inspiring customers stuff – anymore than they go to through both virtual and physical stores restaurants purely for nutrition. to visualise, develop, then realise their Stores have had to recognise and redream – today! spond to this.
‘Consumers don’t just shop to get stuff – anymore than they go to restaurants purely for nutrition.’ October 2013
37
Tech Talk
Hardware & Homestyle News This month our intrepid and slightly nerdy tech-head, Colin Baker, got his happiness on at the largest Consumer Electronics show in Europe – the IFA in Berlin. Expect much excitement and inspiration in the words that follow, especially for those who sell electronics!
Ich Liebe Gadgets! I’ve been to all manner of trade and consumer shows – I have even worked on stands and exhibited and always enjoy the madness of the Ideal Homes or the Toys for Boys or indeed any of the larger trade and consumer shows around the country. So I figured, well, I knew what to expect when I was invited to the IFA in Berlin. Something similar - on a larger scale. So ... I was wrong. For starters, take our RDS in Dublin, it’s a good size. You’ll definitely not have any major issue fitting what you need to fit inside it. Almost regardless of what industry you are in. To even attempt to compare that to the sheer vastness of the convention centre in Berlin would be like comparing a row boat to the Titanic. It is enormous and then some.
Figures
To put it in figures – this year boasted almost 12 kilometres of technology stands. In 5 days, over 300,000 people will pass through it. To actually spend time with everything at the show is reputed to take nearly 3 months. This is scale that is not easy to imagine, let alone organise. Essentially, it is where the brands and manufacturers in technology come to flaunt their wares: From Samsung to LG, Sony to Lenovo and everyone else in between. Interspersed with smaller unheard of manufacturers straight out of Asia and a decent smattering of German eateries, I’m thinking this is where the Germans truly excel: Imposing impeccable order on potential chaos!
The big hitters...
Samsung were displaying their wares right at the entrance to the show and typically they did not disappoint. Their ‘stand’ was essentially a hall the size of Arnotts, beautifully clad in attractive models standing in the vicinity of even more attractive tech. The ‘Smart Watch’ featured heavily and was launched at the show. Essentially a pleasant-looking wristwatch companion to the new Galaxy Note 3 (or any other android smartphones) that connects to your phone via Bluetooth and relays information like notifications of texts, emails or facebook updates to your wrist along with allowing you to take pictures straight off your smartwatch, via a cleverly built-in lens in the strap. Looking very much the love child of a wrist watch and a touch screen smart-
38
October 2013
Colin Baker gets far too excited for his own good every fortnight on TV3’s Ireland AM when he shows us the latest in tech from the fun and frivolous to the vital and life changing! Colin also heads up Back From The Future and Laptoplab, servicing and repairing the country’s computers and technology.
phone, that is pretty much what it is. Though it’s cool to play with – I can’t imagine being cool with plugging my watch into the wall every 2 nights or regularly stopping to enjoy the ‘pair device’ Bluetooth dance anyone who uses a Bluetooth headset will know about. We have a way to go before this form of ‘wearable technology’ becomes practical and truly desirable.
Television
CURVED OLED Television ... there’s a mouthful. Although with all these other Smartphones and devices you might be forgiven for thinking the television was planning on laying low for a bit. Not so in Berlin this year – the grand masters of TV, Sony, Samsung and LG had enough Televisual beauties on show to reslate the Sydney Opera House. Handy too then that the latest trick is to ‘curve’ the 4mm thick screens TOWARDS the viewer. Ken Hong of LG explained to me that because of the curvature of the eye, screens that are curved in the same manner are perceived by the eye as deeper and more immersive. Whatever he was talking about, they certainly looked stunning! Of course Ultra HD is now also a mantra at the forefront of Television tech – with FOUR TIMES the definition of HD. Effectively meaning that larger screens can look even better – even close up. And they do. Now all we need to do is to wait for something Ultra HD to plug into the yokes.
Lesson
A real life lesson for me was instilled at the Monster stand. Monster have been making high grade audio and video cables for a long time but in recent years gained real world fame for their Dr Dre Beats headphones – the desire of most every youngster and hipster on our island along with everywhere else in the world. After a recent separation with Dr Dre they move forward with similarly expensive but fairly decent offerings of almost every shape and size. What struck me very quickly, after a colourful interview with Xzibit, the rap-artist personality of Pimp my Ride fame, was the focus on fashion and image. Although this stuff sounds great, the real clincher is the ‘feel good factor’ of owning a pair created by celebrity endorsements like the very friendly Xzibit (real name, after some prodding – Alvin) and the lofty pricing and marketing of the merchandise. Quality sells, but social status sells even
better!
Round up
After filming some interesting and headlining items for TV3 and my friends over at Harvey Norman, I managed to escape the posse, throw on a pair of runners and take the rest of the show at my own pace. Lenovo threw me a TWENTY inch android tablet which was definitely interesting if not too big. Acer introduced me to their plan this Christmas to release decent quality android smartphones with a difference – they are NOT locked to any one network and they will have TWO sim slots – perfect for those who have two phones or travel a bit and like to have a local sim card to wherever they may roam. Clever and very consumer-driven. I played with the handsets and they were every bit the quality of any of the big fellas out there. Most notably, although there was a stream of Apple accessory brands there, cases and chargers and brackets and essentially anything you could possibly relate to an iPad or iPhone, Apple themselves were not there and tend to shun these industry battlegrounds. Most likely they simply don’t see the need.
Hats off
Seriously though, hats off to the Germans. Something this big should be chaos. I know – just wandering around was hard. It was like starving yourself for a month and then being at the largest food festival in the world.
Hardware & Homestyle News
Counter Intelligence
In the last issue we discussed how to measure your floor and work out which areas are performing and which are not. The strategy there was to reduce or increase the space taken up by ranges depending on how they were selling. So, how do we build a new product range within a department? John Hogan takes up the story with the second part of this series…
Range building in Hardware and Homestores First, let’s assume that you have the range correct for materials such as lumber, plumbing, ironmongery etc. and focus on departments such as Homewares. Consumer preferences in these areas are harder to gauge and it is their changing preferences that end up costing you money. It may sound obvious, but it is about selecting the right products for your stores. Do your market research by visiting or talking to progressive retailers, attendance at fairs and review of trade publications. (Like Hardware & Homestyle News!)
Key considerations when building a range are: Avoid duplication of products that do the same job. This is one of the greatest temptations that a buyer has when reviewing the different samples from various suppliers. The point is to know when you are only selecting duplicates of another item and not adding true choices. Duplicate products will cause confusion in your range if there are too many similar products. Have a meaningful range of prices. Each subgroup should have a meaningful range of prices for the products in the range. The number of different prices should reflect the type of merchandise and how wide the range is of the selection. Catering for good, better and best is normally a very good idea. Do not have price points that are slightly different as this will again just confuse the customer. Avoid using too many suppliers. Exclusivity in your area is generally not possible when you deal with too many suppliers and buy small quantities from each. You do not have the same strength as a buyer who buys large quantities from one or two suppliers, nor dependability of service when you work with too many different suppliers. Make sure that you have the right mix of core lines – lines that are a direct replacement for something sold previously and newness. Choose products for in-store impact
and presentation and to reflect your company’s ethos and image. You must keep in mind how the range will be seen by the customer. You must be clear on your company’s store concept and image, and work up from there to build the range.
Something that we do not see enough of is trial products or ranges. For many hardware and homeware stores, there is a wide range of products fairly readily available that might enhance the offering to the customer and the profits to the company.
Construct your range carefully from a gross margin point of view. Start with the value lines that are comparable with competitors so that you have a very good value perception. Make sure that you have a good margin on the balance of the range, where maybe you have exclusivity, less of a direct comparison or regular ranges.
Most new products carry more risk than existing products, so proactive trialling can be a great solution. Perhaps a Sale or Return deal could be negotiated with a supplier for a new range for a larger store. This fills space but more importantly creates history. History is sales data you can analyse later to help make better buying decisions. Its performance should be reviewed after one month and then, say, three months to see whether it is something for building on or time to get out of it.
Where we place products on shelves also makes a difference. High margin items should have pride of place at eye level and then downwards to best sellers, regular sellers and low margin products closest to the floor. Another key lesson to learn here is to give an appropriate number of facings to reflect potential sales and quantities bought. Too small a display will lead to markdowns as it will not sell through, too high means it will sell out before the rest of the range.
John Hogan is a director at Real World Retail, a software business that sits on top of Epos or ERP systems to give the Retail Owners the real relevant information to make profitable decisions. This is in the form of a Decision Support System that grows sales and margins and reduces working capital and costs. John can be contacted at 01 427 0349 or at john.hogan@realworldretail.com October 2013
39
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Hardware & Homestyle News
Insulation Update
According to Niall Crosson, Technical Engineer from Ecological Building Systems, there is a huge array of benefits to be had using natural insulation. In this month’s issue, he addresses the question:
Why choose Natural Insulation? Historically, natural insulation materials have struggled to enter the mainstream of the built environment due to the misconception that they cannot compete in the area of performance or cost. When one considers the array of benefits natural insulation provides, the reality is that natural insulation materials outperform many man-made insulation products in both these categories. Until relatively recently it was solely the superior ecological characteristics which separated natural insulation products from the various other forms of man-made synthetic insulation products. The introduction of higher levels of energy performance in buildings and greater public awareness combined with more stringent requirements for higher levels of quality insulation has led to a significant influx of a vast array of alternative insulation materials. Over the past decade the range of natural insulation products and their areas of applica-
tion have expanded. Designers, specifiers, contractors and homeowners also appreciate the vast array of superior technical properties which natural insulation inherently offers. Ecological Building Systems provides a range of natural insulation products in the form of GUTEX wood fibre, CALSITHERM calcium silicate insulation, THERMO HEMP, THERMAFLEECE Sheep wool and DAEMSTATT cellulose natural insulation products. Each of these materials has a unique combination of key characteristics which helps to create a healthier, more comfortable, energy efficient, durable construction. Natural insulation materials do not underperform when compared to many man-made synthetic insulation materials. In fact they often outperform many man-made insulation materials in a range of areas, and, in addition, are renewable and sustainable materials which meet key sustainability criteria. Natural insulation materials feature an October 2013
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INSULATION SOLUTIONS THAT EXCEED INDUSTRY STANDARDS Ballytherm Ltd. manufactures flexible faced rigid PIR Insulation boards used mainly in floor, walls and roofs.
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If you would like to find about more about us or about our products contact us on info@ballytherm.ie
•Rust on railings, gates, sheds, machinery etc •Peeling Paint on galvanised steel, sills, cappings, fascias •How to paint kitchen cabinets without chipping or brush marks •Restoring the natural look to faded garden furniture, cedar cladding etc •Restoring peeling, slippery timber decking •How to paint the front door ‘like 10 Downing St’ •How to get rid of toxic mould on walls •How to make home warmer with lowest cost insulation •How to make grout white again
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Hardware & Homestyle News array of characteristics which, when used correctly, can improve the building’s performance considerably. The following are just a number of the key features and additional benefits natural insulation provides: Hygroscopic Performance: Unlike synthetic fibres, natural insulations have an inherent property, in that they can absorb and release moisture hygroscopically offsetting condensation risk within building elements. Specific Heat Capacity: In lightweight construction – and as habitable spaces in attics become more commonplace – it is important to account not only for the thermal insulation qualities of the insulation in winter, but also for potential overheating within the living space in summer months. Most natural fibre insulation materials have a specific heat capacity of over 2100J/kgK, compared to only 800J/kgK for mineral wool and 1400J/kgK for plastic insulations. Independent tests have shown that when natural fibrous insulation is used in habitable attic spaces the temperature on the warmest summer months can be up to 60C cooler, compared to an equivalent construction insulated with mineral wool. In this way natural insulation creates a much more tolerable living environment not only in winter but also on the warmest days of the year. Acoustics: Due to the combination of nat-
Insulation Update
ural insulations’ high density, their fibrous nature, flexibility and ease of handing and cutting, natural insulation products again far outperform many synthetic fibrous and plastic insulation materials acoustically. Thermal resistance: Natural insulation products can achieve a thermal conductivity as low as 0.035W/mK, which outperforms many synthetic insulation products. Many of the lowest energy buildings in both new build and retrofit, including certified Passivhaus’s and the first Enerphit retrofit projects in Ireland, primarily employed natural insulation. Sustainability: The sustainability and the ecological attributes of natural insulation products are second to none. Many natural insulation materials not only reduce heat loss and CO2 emissions in buildings, but also may sequester CO2 even after being produced! For example for every m3 of THERMO HEMP insulation manufactured it sequesters 13kg of CO2. When one factors in the additional health benefits for the dwelling occupier and installer, the increasing cost competitiveness of natural insulation, the superior durability and the breathable features of natural insulation products, their advantages become more apparent. With an appreciation of the laws of building physics, natural insulation products provide an effective means of improving the energy efficiency of both new and existing buildings.
When considering the energy efficiency of buildings one cannot underestimate the positive contribution which natural insulation materials offer on many levels. As buildings become more energy efficient, the environmental impact of the building envelope increases significantly. Constructions which are energy efficient, durable, healthy, ecological and sustainable in every sense of the word should be designed with some form of natural insulation, the benefits of which are not only in the money we save, but in the environment we live in, particularly as it is estimated that we spend up to 90% of our lives in buildings. Niall Crosson, Technical Engineer, B.TECH. MENG.SC MIEI For more information and product samples contact Ecological Building Systems Main Street, Athboy, Co Meath. Log on to www.ecologicalbuildingsystems.com, email info@ecologicalbuildingsystems. com, or call 046-9432104.
Ecological Building Systems offers free guidance in relation to airtightness and insulation specifications. Specifiers, homeowners and builders are welcome to visit their showrooms and training centre in Athboy, Co Meath. A range of insulation and airtightness training courses is also available at their training centre.
‘Insulating paint cuts costly heat loss, condensation / damp walls and toxic mould’ Dublin-based specialist supplier Igoe International reports that, despite the recession, its Warmcoat energy saving insulating paint output continues to achieve record growth. Speaking at a recent press gathering, company managing director Brendan C Igoe said: ‘Most sales of Warmcoat nation-wide over the last 12 months have been mainly from word of mouth, and comments from customers are very uplifting and gratifying.’ Igoe added: ‘The two main problems we come across are cold, poorly-insulated walls, condensation and unhealthy mould problems, and this product addresses both problems to a high degree of user satisfaction for as little as €75 for a small box bedroom.’ According to the company, their Warmcoat Advanced Insulating Paint is said to reduce heat loss by up to 25% and also helps with problems of condensation and toxic mould on walls etc. Mr Igoe added: ‘Anybody whose home or building is hard to heat, can, without big expenditure or disruption, benefit by applying at least two coats of insulating paint.
‘It is not unusual to achieve an average of 2 or 3 degrees higher average room temperature with the same or less heating required, with further benefits including a reduction in one’s heating requirements and in musty odours, drier mould-free walls, and a reduced carbon
footprint. Igoe also added: ‘Warmcoat is especially effective in older homes where wall insulation is poor or even non-existent – like cavity blocks or old solid stone walls etc. ‘Warmcoat insulating paint works by forming a thermal barrier between the room’s ambient air temperature and the cold wall – which makes the wall feel warmer to the touch, and this in turn, reduces, and in most cases eliminates “cold/wet wall” condensation, and subsequent toxic mould problems.’ The company added, ‘Warmcoat is applied like any normal paint and can also be painted over with any make, brand or colour of regular household paint of your choice.’ Warmcoat Insulating Paint covers up to 16m2 per litre per coat, and is available in DIY and paint stores around the country at around €75 per 5-litre can, including VAT. For more information about Warmcoat contact Igoe International Ltd on 01 830 22 50, Igoe International Ltd, 135 Dublin Industrial Estate, Glasnevin, D11, www. igoe.ie/warmcoat
October 2013
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Products
Hardware & Homestyle News
ComfyBed Equine Bedding
ing. No additives. No toxins. Benefits: Soya Wax is longer, cooler and cleaner burning. Compared to paraffin wax Soya Wax burns up to 30%-50% longer, with no toxins and less soot buildup, and is biodegradable. Eco Elements: With Emma’s Eco-Soy Candles the emphasis is on health, purity and nature. As Soya Wax is water soluble, Emma’s Eco-Soy Candles’ glass tumblers and tins can easily be cleaned and re-used or recycled.
ComfyBed Equine Bedding from C.J. Sheeran Ltd has seen growth of 45% year on year since its launch in 2009. ‘We are currently supplying ComfyBed to all the major Hardware groups in the country but from research at the Dublin Horse Show the need for more independent hardware stores to stock the product is evident,’ explained Mark Sheeran, md of C.J. Sheeran Ltd. Mark tells us: ‘Comfybed is made from 100% recycled timber as is our Second Harvest Wood mulch.’ For further information contact the sales team on 057 8756700 or info@cjs.ie. and, the fact that it is completely safe to touch or ingest by children and animals – makes it ideal for eco-sensitive areas such as farmyards, and also for use in schoolyards and play-areas. It can also be used for emergency traction for vehicles.’ EcoTraction was introduced to the Irish market with great success by Irish Wire Products. ‘It is available in three different sizes – 2.5kg, 4.5kg and 10kg bags – so it is “tailored to fit every retail opportunity”. ’
Mark Sheeran
EcoTraction
prevent slips and falls in winter EcoTraction can provide the solution to all your customer safety needs in the snow and ice, we are informed. ‘It gives instant traction, has a nine times greater spread rate than traditional ice melters – one cup of EcoTraction covers a parking space of 139sq. feet – has no use-by date and is completely salt-free. ‘EcoTraction does not corrode, rust or stain so it will never damage brick, metal, wood or concrete.’ Unique EcoTraction is a ‘unique, naturally occurring highly porous yet rigid hydrothermal volcanic mineral’. It acts like a rigid sponge that absorbs the thin layer of water on the surface of ice. ‘It then embeds itself into the ice, creating a “sand-paper” effect, providing instant traction. ‘EcoTraction turns dark green in colour when wet, displaying a visibly safe walking or driving zone. ‘EcoTraction is perfect for footpaths and car parks as it won’t damage concrete or tarmac. Its eco-friendly nature –
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October 2013
Award-winning ‘EcoTraction was awarded runner up in the category of Best Home Product at the IHBMA Show 2011,’ we are informed. ‘It has been promoted at many public shows, and, as a marketing initiative, information was directly mailed to 10,000 Health and Safety Officers with a special offer delivered to their business directly from their nearest stockist.’ For more information see www.ecotraction.ie or contact Irish Wire Products.
Emma’s Eco-Soy Candles
Emma’s Eco-Soy Candles are all-natural, handmade soya wax candles that are fragranced with only pure, high quality, natural essential oils and with a cotton wick. The candles contain no paraffin, no artificial dyes or synthetic fragrances. Beautiful This all natural home fragrance candles collection includes a 50 hour Glass Tumbler Candle presented in a uniquely bright and beautifully designed box, a smaller 20 hour Tin Candle and a new, convenient Wax Tart Melt for use in an oil burner. Features: No paraffin – the candles are made from soy wax. No synthetic fragrances – the candles are scented with pure essential oils only, each with up to a 10% content. No artificial dyes or colour-
Biodegradable The container for each Wax Tart Melt is made from plant-based materials that are biodegradable and can be composted. Materials, Packaging and Graphic Design have been sourced as close to home as possible. Essential Oils give a naturally delicate, clean fragrance that will not overpower the room. The variety of carefully chosen Pure Essential Oils in Emma’s Eco-Soy Candles offer many healing benefits from the relaxing effects of Lavender to the uplifting spirit of Citrus Fruits. The core collection of inspired fragrances includes Lemongrass; Lavender; Citrus Blend; Orange & Palmarosa; Spring Romance and Harmony Blend. Limited edition Seasonal Christmas fragrances for 2013 include Spiced Orange; Wonderland Blend and Mint Crisp; and it is hoped that an exciting new Pure Essential Oils fragrance blend will launch each spring, with further new additions complementary to the all-natural home fragrance collection. Pricing Both the core range of six fragrances and the three limited edition seasonal fragrance range are available in the 50 hour Glass Tumbler Candle RRP €19.95, the 20 hour Tin Candle RRP €9.95, and the new Wax Tart Melt for use in an oil burner RRP €4.95. For more details, to purchase, or for stockist and wholesale information contact Emma on 00-353-87-4181014, or email info@emmas.ie, www.emmas.ie
Hardware & Homestyle News
Bright and bold laundry on the go
Brabantia launches new Portable Laundry Bags It’s time to make the task of doing the laundry more glamorous, colourful and fun thanks to Brabantia’s new Portable Laundry Bags. In a choice of five eye-catching colours, Lemon Yellow, Lipstick Red, Pansy Purple, Warm Grey and Caribbean Blue, the Portable Laundry Bag is certainly a
bedroom. All Portable Laundry Bags can be hand washed or wiped clean and have a twoyear guarantee. www.brabantia.com
Fleetwood’s specialist hygiene coatings
Fleetwood has developed a range of specialist hygiene coatings, Bio-Tec, for use in a range of areas where hygiene protection is needed. Cutting edge ‘Bio-Tec silver ion is the latest in cutting edge technology developed by Fleetwood Paints’ chemists in conjunction with their many worldwide material suppliers,’ explains Fleetwood Paints spokesman Tom O’Connell.
Products ful bacteria, including MRSA, E. Coli and pseudomonas aeruginosa. Outside the laboratory, Bio-Tec coatings have been successfully deployed in top-class Irish hospitals. ‘Bio-Tec has been on the market for six years now,’ says Tom O’Connell. ‘Both the Maternity Hospital and St James’s have been using this product for many years in its many different versions.’ Other recently completed projects include applications in the Beacon Hospital, Galway Clinic, Castlerea Prison, Boston Scientific, Elan, Allergan Pharmaceutical and the Department Of Defence. Excellent Thanks to an acrylic resin system, BioTec is a scrubbable, durable coating, with an excellent abrasion resistance that can withstand repeated cleaning cycles.
New torches Team PR Reilly
from
Now available at Team PR Reilly is the new range of Active torches which includes a variety of Autumn and Winter lighting essentials for the car and home.
household product you’ll want on display. It’s the perfect laundry bag solution and looks good in bedrooms, bathrooms and utility areas. So easy to use – just fold down the magnetic handles to create a clever ‘quick-drop’ opening, for popping in those ready-to-wash items. The generously sized bag is lightweight with large comfortable handles and can be easily moved around the home to collect and store laundry. Its large XXL capacity means one can store a full load of up to 10kg. When it’s time to load up the washing machine just flip the top to create a large opening making it easy to unload the laundry. And, when the bag is empty it simply folds flat for easy storage. To add an extra splash of colour to the home why not use two different colours of Portable Laundry Bags, one for whites and one for coloured items? The fun colours and strong construction from tough material also make the new Portable Laundry Bags perfect for storing children’s toys and they will make an attractive feature in any playroom or
The advanced coating has been proven to significantly reduce the spread of disease and infection – from MRSA and Salmonella to E. Coli – alongside regular cleaning procedures. Quick-drying to reduce disruption, the coating has been developed with advanced acrylic to be durable and capable of withstanding constant washing. Key to the effectiveness of Bio-Tec coating is silver ion technology. The coating contains antimicrobial agents including elemental silver molecules embedded within paint. When microbes come into contact with a painted surface, water molecules encounter the elemental silver, producing silver ions (Ag+). These silver ions will rise to the surface of the painted area, attaching themselves to microbes and inhibiting growth. Conditions Under the Japanese JIS Z 2801:2000 test, which simulates real life conditions by introducing live bacteria and monitoring under ambient temperature and humidity conditions for 24 hours, the coating showed dramatic success in containing potential infection. Bio-Tec significantly outperforms standard paint in containing a range of harm-
Popular We all know LEDs are becoming increasingly popular as they extend battery hours and seldom require replacement of bulbs. Active torches meet everyone’s lighting needs this season, we are told. ‘Active’s 1W LED Spot Light Hand Torch which uses 1 ultra bright LED bulb, provides up to 40 hours of battery life compared to other hand torches containing standard bulbs which may only supply about 7 hours. ‘With new sleek aluminium torches ranging from 60 to 100 lumen, there is a torch to suit everyone and will make an ideal car accessory this winter or a perfect Christmas gift. ‘Re-chargeable hand torches are also available including the new 130 Lumens Spot Light Hand Torch which comes in two variations, a standard and a HI which contains a 150 metre beam feature, 4 hours of battery, 130 lumens, an adjustable base stand and 1 Ultra Bright LED.’ Ideal With Halloween just around the corner, Team PR Reilly has the ideal torch for ‘trick or treaters’! With the new Active LED Glow Torch, even the handle glows and is available in green, blue, orange and red. It also contains a battery life of 4.5 hours and also has an ultra bright LED. Most surprisingly of all is the price at only €3.50 RRP! For more information about Active torches contact Team PR Reilly’s Sales Team on 01 832 0006. October 2013
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Room outside
Hardware & Homestyle News
The importance of knowledge is easy to overlook in the grand scheme of things. We are all aware of the knowledge we possess ourselves but we tend to make rash assumptions about the knowledge of others. More often than not we presume that people know what they want, which they often do of course, but the mistake we make is thinking that they know how to achieve the end result, Liam Kelly reports.
Teaching your customers – & educating the lost generation
‘People want to return to the gardening and DIY of their parents’ and grandparents’ generations.’ 46
October 2013
If you are of a certain age – and I am – then you will remember a time when people knew stuff.
‘How to’
They knew how to cook, they knew how to repair their cars, they knew how to do home improvements and they knew how to garden. Ok, so the ease of ordering a takeaway and the need to hook your car up to a computer to diagnose the simplest problem put paid to the first two examples but what about the other two? What happened to this knowledge? Personally I blame the nineties. (I am too fond of the eighties to blame that decade too but…) The nineties, and early ‘noughties’ too, are the eras when a whole age group lost the need, and the desire, to do things for themselves. It was a decade where Do-It-For-Me ruled, disposable income actually existed and anti-heroes like Gordon Gecko and
Tony Soprano were revered by a poorly informed – and poorly dressed – generation. In the space of about 15 years a cycle of teaching and learning, that started from the time when humans first tilled the soil and started using tools, and had been passed on from generation to generation, was cut off by many who felt they no longer needed to know. (Excuse the drama…)
Return
Now here we are in 2013, in the midst of a recession where people want to return to the gardening and DIY of their parents’ and grandparents’ generations in order to save money or for a multitude of other reasons. Unfortunately, they lack the necessary skills to achieve the ‘D’ part – basically they can’t ‘Do’. Luckily for those lacking the aforementioned cooking skills there are a plethora of really good cooking programs, even whole channels, dedicated to showing
Hardware & Homestyle News
people how to cook. Many presenters even go back to basics and show you how to boil an egg, and do so in a fun as well as informative manner. Not so for gardening, or DIY for that matter. With very few exceptions most of the shows on these subjects will show you what you can achieve, but rarely how to achieve it.
Show
For example, last week I watched a show on deck building on one of the so called home improvement channels but it could hardly be called a ‘How to…’ program. You follow the progress of a group of professionals who tear down one deck and build a new one but nowhere does it show you how to make a mitre cut, what screws or nails to use, or what plants to put in the lovely new containers they have placed on a shady part of the deck. Apart from entertainment value, what use is this to a generation who can’t even figure out how to hold a hammer properly or don’t know the difference between potting compost and moss peat? And more importantly for retailers, how does it affect your sales? The basic premise for retailers in general and our sector in particular is that a better informed customer will spend more money in your store. By having the know how to achieve a task – be it planting a container for winter, creating a garden pond or simply hanging
a trellis on a wall – they will have a checklist of all the items they need to complete the job.
Fact
This sounds very simplistic – and I can hear you all saying, ‘Well, duh!’ – but it’s still a fact that’s often forgotten. How often have you seen a frustrated customer come to your store multiple times in the one day because they didn’t know they needed lime-free compost to plant that camellia or plugs and screws to hang that trellis? And those are the ones that come back to you. What about the ones that don’t? Let’s take the example of the camellia buyer. What if they hadn’t come back and instead had made-do with alkaline garden soil – which camellias hate – in their pot? As well as missing out on the sale of the compost and fertiliser you will end up with a customer whose plant slowly dies. And you can be pretty sure they will remember where they bought it! So, you’ve lost a customer, probably without knowing it, all because of their lack of knowledge. But of course it’s not their fault – it’s yours. You assumed they knew what they wanted and what they were trying to achieve. There were ample opportunities to inform the customer of what they needed to make that camellia thrive. Link sales with
Room outside
Needful Things for October... Autumn in is full swing and kids are finally settled in to school so customers are a little more focused than last month. Make sure your flower bulb display remains tidy, well stocked and appealing. Avoid the temptation to squash everything on to one stand and don’t reduce the price too early. Highlight autumn as ‘Clean Up Your Garden Time!’ with promotions on rakes, gloves, tidy bags, bark mulch, etc. Back this up with effective point of sale material. It’s a good month to plant trees so promote a nice tidy range, preferably those with autumn colour. There is plenty of evergreen shrub stock available to fill the benches right now. Skimmia, pernettya, virburnum varieties, to name but a few, are all looking great at the moment so no excuses for empty benches! There are still plenty of bedding plants available for winter colour, so drive sales with multi-buy promotions and keep that stock looking fresh. This is a great time of year to plant so remind your customers of this fact and give them plenty of choice. October 2013
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Room outside
Hardware & Homestyle News sumers in what they need to know in order to achieve their end requirement, and by doing so increasing the sales and average spend within your store. With so much garden product being sold on impulse these days this kind of staff member is more important than ever.
the product, interaction with floor staff or at the final safety net, the till operator.
Knowledge
Ok, I’ll stop berating you now and we’ll look at some of the ways you can educate your customer and give them the knowledge they want while driving the sales that your store needs. As we have already mentioned, you shouldn’t depend on outside forces to educate your customers in any meaningful or practical way – at least not without them making the conscious decision to attend gardening classes – so the retailer has to assume the mantle of educator from the moment the customer enters your store. Both garden centres and hardware stores have this issue in common and they both need to take a similar approach to the responsibility. Many stores already hold gardening workshops and events to try and instil the knowledge of growing cycles, plant care and basic garden best practice to their customers. These can be run by outside gardening gurus or the in-store plantsperson. (I detest the word ‘horticulturist’ which is overused and can put off many new gardeners who have basic questions, as they fear they will be answered with a snort of derision when they ask which way up to plant a flower bulb!) The important thing is to keep such events simple and basic and assume that your audience know nothing about gardening at first.
Challenge
Attracting a younger generation can be a bit of a challenge but by carefully wording your marketing blurb and making the talk sound fun and informative it can be done, especially with the ease of use of social networking sites for promotion purposes. As I mentioned earlier – and also discussed in a previous article – one of the best places to instruct your customer is at the point of sale. This can be achieved with simple signage and by having stock of all the ‘needful things’ for that product close to hand. At least then the customer can make an informed decision on whether or not they want to purchase these beneficial add-ons. Those of you with online shops have no
Many
excuse, as all products can have a small pop-up blurb that informs them of the product’s requirements and what extras the customer might need. Many EPOS systems also have a popup box that will inform the till user that a product has special needs or requires a separate, additional product in order to function, not to mention suggesting link sales.
Interaction
Another way to teach your customers is by their interaction with a staff member. Providing they have the product knowledge, and that rare gift for imparting it in a non-threatening and sincere way, then they are perhaps the key educators of customers you can ever possess. You could even consider employing someone on weekends and at busy times and whose sole task is to instruct con-
‘The important thing – as always is to do something.’
There are many other ways to educate too, such as QR codes on your products and gardening apps for the tech-savvy, or well-written leaflets for the technophobes. Use your suppliers to both educate your staff – train-the-trainer so to speak – and to educate your customers on product promotion days. Sponsor a column in your local paper; just make sure you keep the topic light, friendly and informative. I would avoid the ‘staged question’ style of article, which is a little outdated, in favour of a simple, well written ‘how-to…’ piece told in a relatable, anecdotal fashion. Host a family day or sponsor pumpkin, strawberry or tomato growing competitions to be judged in your store. Interact with schools and help teachers with the training of the new generation of gardeners. As you can see, the list of ways you can teach and train is endless. The trickier issue is actually implementing some of these ideas. Pick a couple and run with them for the autumn/winter period to give you confidence for the spring. Measure how effective they are both in customer feedback and sales. The important thing – as always – is to do something.
Key goal
If we all played our part we could start this cycle of learning once again, as well as driving sales – the key short-term goal. And we could all be better equipped to pass on the basic knowledge to the next generation. Without wishing to sound too condescending or trite it would, and could, make a big difference to our way of life and this semi-fictional quality of life that we are all trying to achieve. Just remember to teach stuff!
About Liam Before establishing Retail Services & Solutions in 2007, Liam was general manager of one of the largest garden centres in the country and has since worked with many garden centres, nurseries and hardware stores. Problem-solving ability, honesty and hands-on work ethic make him unique in his field, plus he can appreciate the day-to-day running of garden centres better than most, as he knows the products, mindset and ethos of the Irish garden retail sector. Contact him at lksolutions@eircom.net or visit www.lksolutions. blogspot.com
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October 2013
HR News
Hardware & Homestyle News
As Retail Ireland’s Stephen Lynam pointed out last month, there are 270,000 people working in retail but not all of these are on the shop floors of course! There are back office operations from accounts to marketing to HR and logistics. What are the pros and cons of some of these people working from home? Colin Madden looks at the issue.
Home-based staff – the way forward for the SME? In my previous articles I discussed the important decision for small businesses to take on staff and the recruitment process involved and had planned to follow this up with a piece about how to get the best out of new employees. However, I was at a business seminar the other week where the question of alternative employment methods came up time and time again, particularly on home working where some employers were looking for ways to avoid the costs and contractual obligations usual for business-based employees. In this turbulent labour market more and more small businesses, fearful about committing to take on more staff are looking for greater flexibility when it comes to hiring extra help (as highlighted by the controversial zero hour contracts currently in the news) and having employees based at home rather than in the actual business premises can potentially boost productivity and lower overheads. In this article I thought it would be beneficial to clear up any misconceptions around worker rights or employer responsibilities whether the employee is based at the business or not. Mobile phones, broadband Internet connections (Skype, Viper etc.) and other technologies such as secure networks have made it possible for many employees to carry out their work from home. Research suggests that home working increases productivity and can reduce stress and sickness absence. It can also reduce your overheads. But while employing staff who work from home can benefit both your business and your staff, it also brings new responsibilities.
other representatives, before changing their employment contract. Your business may also take on home workers who are not employees but are self-employed. Self-employed workers are responsible for their own tax and National Insurance, but you are responsible for determining a worker’s employment status. A home worker will be classed as an employee if they are contracted to work a set number of hours for a set wage or salary, and you decide what work is done, and when and how it is done.
Research suggests that home working increases productivity
Employment status quo?
Working from home will not necessarily affect an employee’s employment status. However, you may need to alter their employment contract to reflect the change in their place of work, any changes in hours or duties involved and any changes to other terms and conditions. You may also need to add clauses relating to the provision of, or responsibility for, equipment used for home working. You must consult with the employee, and should involve their trade union or
Home risk assessments
You have a responsibility to ensure that your employees are safe in the workplace, even if that workplace is an employee’s home. In theory, this could require you to visit the employee’s home and carry out a risk assessment of their home working environment, but in practice this can usually be done at a distance with the employee’s cooperation. You must also ensure that employees working at home are aware of how to manage their own health and safety, and provide them with suitable equipment where required.
Do
Insuring success
Insurance is an important consideration, and you should ensure that your employer’s liability insurance provides suitable cover for employees working from their homes or travelling out to external appointments from home. You should also make sure that home workers are aware of their own responsibilities in terms of informing their own insurance company, as well as their landlord and local authority where applicable. Effective home working requires cooperation between employer and employee. Regular reviews will help to ensure you are complying with your responsibilities, and demonstrate your commitment to home workers and your appreciation of their value.
Amend employment contracts to take account of change of workplace and any other changes. Ensure that electrical equipment provided to home users has been suitably tested. Consider trial periods to ensure that home working is best for your business and its staff.
Don’t
Home workers should also notify you of any accidents they have at home during work hours. You are responsible for any work equipment you provide to home workers, but not for the home worker’s own equipment. Any electrical equipment should be tested before it is provided. The type of work carried out by home workers is typically low-risk administrative work. However, risks still exist, for example involving the use of display screen equipment (DSE). Some home workers may carry out work that requires other health and safety considerations, for example those that work say, in gardening or maintenance, and use adhesives or lead soldering equipment. You are responsible for providing suitable personal protective equipment (PPE) where it is needed.
Forget to supply home workers with personal protective equipment where required. Refuse a statutory request for home working for anything other than for a valid business reason. Dismiss or make redundant an employee on the grounds of a request to work from home.
I have written a quick summary of ‘Dos and don’ts’ to assist in this process.
Colin Madden is a senior HR and Organisational Change Consultant and Chartered Fellow of the Chartered Institute of Personnel and Development (FCIPD) with over 25 years’ experience in recruitment, employee relations and workforce development including working at the London Development Agency (LDA), the Mayor’s office for economic improvement and skills as a Senior Advisor on ‘People’. He can be contacted on cmadden@ fsmail.net October 2013
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The Final Say
Hardware & Homestyle News
This month James Sweetman continues his mini-series on recruitment with the second instalment – where he looks at ways to enhance your interviewing skills.
Enhance your Interviewing Skills (Part two – fine-tuning and useful questions to ask) From a staff management perspective, every firm’s effectiveness is dependent upon three factors: the calibre of staff, the training staff receive and the on-going supervision and performance management of staff. Get the first factor right and the second two are easier. In last month’s article I shared with you some practical strategies for enhancing your recruitment and interviewing skills. This month, in part two, we do some fine-tuning and explore useful questions to ask during an interview so you can make informed hiring decisions. Of course, if you are reading this as a candidate for an interview, you are getting some useful tips as well! Having identified the competencies for the role (which we explored last month) during the interview you assess candidates against those competencies. This is where preplanned questions are useful. Two commonly sought competencies are leadership skills and being a team-player. Here are some sample questions for assessing each one.
Leadership
•Give us an ex-
ample of how you motivated a team to improve their performance. •Talk us through how you approach managing change in an organisation. •How would you describe your leadership style?
Team Player
•Give us an example of how you helped a team you were part of achieve a goal.
•In the past, have you ever experienced conflict within a team? How was it resolved? •What do you enjoy most about being part of a team?
The STAR Approach
When assessing answers to the competency testing questions, it is useful to keep the acronym STAR in mind. ‘S/T’ stands for situation or task. Has the candidate set the scene? Have they given a succinct description of the situation or task they were facing? ‘A’ is for action, or ability demonstrated. Have they outlined what they actually did, how they approached handling the situation? What skills have they shown? Have they taken ownership of their behaviours? Were they proactive? Did they show good judgement? Was there logic to their thought process? Finally. the ‘R’ is for result. Was there a positive outcome? What did they learn? Was the example relevant? Well prepared candidates should be able to provide relevant examples especially when the competencies have been listed in the job description.
Eight more useful interview questions 1. How would you see yourself adding value in the role? This is an alternative way to ask the candidate about their strengths and why they feel they would be an asset to the company. 2. What are your weakness?
You are not overly concerned with the candidate’s actual weaknesses, but rather their levels of self-awareness. If they say they have none, then you have just uncovered two: lack of self-awareness and arrogance! 3. Where do you see yourself in five years’ time? This question taps into the candidate’s motivations. Do they simply want a job, or are they interested in developing a career? Have they given some consideration to their future? Do they think ahead? 4. If I were to ask your current/past manager to describe you, what would they say? This question prompts the candidate to view themselves objectively. It also gives an indication as to their levels of self-awareness and honesty. 5. What brings you the most satisfaction at work? Ideally the candidate’s response to this open question will relate to a key element of the role. 6. What do you know about our company? This is the quickest way to discover how well the candidate has prepared. The level of detail in their answer will reveal how serious they are about getting the job. 7. What preparation have you undertaken for this interview? An alternative and direct way to determine the candidate’s proactivity and levels of motivation. 8. What causes you stress at work? Answers that relate to frustrations when the candidate is unable to perform well in their role are better than answers relating to working with other people. Just as you would expect a candidate to prepare for the interview, you need to prepare too by giving some thought not only to the questions you can ask, but also the answers you would like to hear. Pre-planned and well-framed questions allow you to gather evidence so you can decide if the candidate has the skills, knowledge, judgement and experience to be successful in the role.
James Sweetman is a Business & Personal Coach specialising in assisting businesses and individuals realise their potential. He works both on a one-2-one basis with clients as well as delivering workshops on a range of topics including Communication Skills and Motivation. For more information on all his services visit www.jamessweetman.com. Or e-mail him at james@jamessweetman.com You can subscribe for free to James’s monthly ezine at www.jamessweetman.com and follow him on Twitter @JamesSweetman
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